This issue brief provides an overview of state laws related to insurance guaranty funds. Insurance guaranty funds are designed to avoid excessive delays in payment and financial losses to insurance claimants or policyholders because of the insolvency of an insurer.

Health insurance is a method of paying for health care services that spreads the risk and costs across a group of covered persons. In exchange for premiums and other cost-sharing mechanisms, such as deductibles and co-payments, health insurance companies pay for the costs of covered services....